Correlation Between Simt Multi-asset and American Beacon
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and American Beacon at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Simt Multi-asset and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Inflation and American Beacon Balanced, you can compare the effects of market volatilities on Simt Multi-asset and American Beacon and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Simt Multi-asset with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and American Beacon.
Diversification Opportunities for Simt Multi-asset and American Beacon
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and American is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and American Beacon Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Balanced and Simt Multi-asset is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Simt Multi Asset Inflation are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Balanced has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and American Beacon go up and down completely randomly.
Pair Corralation between Simt Multi-asset and American Beacon
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to generate 0.42 times more return on investment than American Beacon. However, Simt Multi Asset Inflation is 2.4 times less risky than American Beacon. It trades about 0.06 of its potential returns per unit of risk. American Beacon Balanced is currently generating about 0.01 per unit of risk. If you would invest 735.00 in Simt Multi Asset Inflation on January 10, 2025 and sell it today you would earn a total of 57.00 from holding Simt Multi Asset Inflation or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. American Beacon Balanced
Performance |
| Timeline |
| Simt Multi Asset |
| American Beacon Balanced |
Simt Multi-asset and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and American Beacon
The main advantage of trading using opposite Simt Multi-asset and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, American Beacon can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Beacon will offset losses from the drop in American Beacon's long position.| Simt Multi-asset vs. Rationalpier 88 Convertible | Simt Multi-asset vs. Columbia Convertible Securities | Simt Multi-asset vs. Advent Claymore Convertible | Simt Multi-asset vs. Gabelli Convertible And |
| American Beacon vs. American Beacon Ssi | American Beacon vs. American Beacon Bridgeway | American Beacon vs. American Beacon Bridgeway | American Beacon vs. American Beacon Twentyfour |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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